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Could The DFW Real Estate Market See A Slowdown in 2016?

It’s no secret that both the DFW housing market and the economy in general has been robust throughout 2015. Steady job gains and sudden population increases have directly resulted in positive growth for just about every segment of the Dallas-Fort Worth real estate market over the past 12 months, but as we rapidly approach the end of 2015, could we possibly see a slowdown in 2016?

According to some economists, lower oil prices and job cuts in the energy industry will almost certainly result in a decline in market conditions, with next year perhaps seeing just a 2 to 3 percent growth as opposed to the 3 to 6 percent we’ve been seeing in recent months and years.

Although much of the North Texas region is much less dependent on the energy industry than many other parts of the state, the carryover from the sluggish energy sector is almost inevitable. Furthermore, changing demographics will almost undoubtedly affect market conditions moving into next year, with more first-time home buyers increasingly becoming millennials, which as we all know have differing lifestyles and buying habits than previous generations.

Increases in rates, although small, will also tighten home affordability, which is perhaps the biggest problem the DFW area is facing in the immediate future. With such tremendous growth over the past 12-18 months, home prices have certainly outpaced wages in the area, consequently making it harder for more people to enter home ownership all throughout the North Texas region.

But even with all the setbacks we could be facing in 2016, overall things could definitely be much worse and 2016 still looks to be a great year for the DFW real estate market.